The amount of foreign
investors is saturating the China market each year. Walking down the streets
in Beijing, one can see a whole array of stores displaying a multitude of
global products. The obvious scene of foreign or global companies entering
into the market indicates the saturation of foreign investment in
China. Over the years, China has attracted the most amount of foreign investors
compared to any other countries.
As foreign investors enter into China, the domestic industry has been benefiting as well.
While working with the foreign companies, the domestic companies have increased in their
technology and marketing tactics. Thus, the market will be more
competitive each year as the domestic industry increases their brand equity
and the increase of foreign giants entering into China.
Therefore, do not assume that entering the market would be easy as the Chinese companies
nowadays are no longer low-cost competition. The consumers in China are
increasing their market demands in company. Furthermore, the Chinese have
very strong national pride, thus to gain more market share in China, foreign products
must not seem too foreign to the Chinese. Hence, foreign investors who plan to enter the market
need to consider how to market their products to the Chinese. The fastest and most efficient
way to find out how the locals feel towards a certain product would be to find a local party for help.
A local party would be able to communicate to the locals and would have a better understanding of the Chinese culture.
In addition, the Chinese government is not easy to communicate with. Due to the bureaucratic style of
the Chinese government, many foreign companies are always confused with the
way administrative procedures are carried out here in China. Hence, to
minimize any delays with the government, it would be best for a local party
to handle the paperwork. This is because first of all, the locals would be
very familiar with the procedures and if they have a good relationship
with the higher authorities, things will be settled even faster.
Very often, foreign companies may have problems looking for suitable Chinese partners as they do
not have the necessary network here in China. Furthermore, if foreign
investors do not understand this culture, conflicts tend to arise when
different decision making tools are used compared to the Chinese. Hence,
foreign companies would need to have a good grasp of the China culture
before entering into the market.
Below are some tips for doing business in China:
01. Complications of the China market
02. Learn about Chinese business style
03. Chinese first tier cities, second tier cities and tiered cities
04. Understand the risks of entering China market
05. Problems that foreign companies may encounter when entering China
06. Tips to prepare for your first Chinese negotiation
07. Selecting the right local distribution partners in China
08. Stages to set up your representative office in China
09. Procedures and costs to set up a representative office in China
10. Understanding the procedures and fees to set up a WFOE in China
11. Tips to set up a representative office in China
12. Tips on avoiding representative office set up problems in China